Applicability of caro

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Pooja (Querist)
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04 October 2013 If a Limited Company (unlisted) has not yet started its operations & is still at its pre-operative stage, then is CARO applicable to it?
I didn't find a clause that would exempt such a company from its purview (except the 3 clauses for a Pvt. Ltd. Co.)
Please help.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 October 2013 if its incorporated then yes it will be applicable subject to conditions mentioned for applicability of CARO is fullfiled.

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Pooja

Pooja (Querist)
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04 October 2013 Can you elaborate a little about the conditions please?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 October 2013 it is not applicable for pvt limited co, o/s loan from bk and financial institution is less then 25 lacs, pd +reserves is less then 50 lacs and turnover is less the 5 crore.

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Ajay Mishra

Ajay Mishra (Expert)
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04 October 2013 Hi

The CARO is applicable on all public limited company and it has not exempted.

Only Insurance company, Banking company, section 25 Company and private company which are covered under exemption criteria as modified by CARO (Amendment), 2004.

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